- The shallow recovery last week fell short of $0.35.
- Ripple is stuck in a relatively wide range between $0.28 and $0.34.
The cryptocurrency market is back in the red, so is Ripple (XRP). The intraday charts show most of the top ten digital currencies languishing under critical support levels. The bears have taken charge of the trend to force Ripple price against vital support areas.
The slight recovery last week fell short of $0.35, instead, forming a high around $0.3422. The dwindling buying power at this level opened the Pandora box. XRP dived below the 100 Simple Moving Average 4-hour chart as well as the 50 SMA 4-hour. The price action further pushed Ripple under $0.30 key level. Extended declines hit pause within a whisker of $0.28 critical support area.
XRP/USD 4-hour chart
Meanwhile, a shallow recovery occurred in the last 24 hours pushing XRP above $0.30. However, the upside is capped significantly by the 50 SMA 4-hour as well as the 100 SMA currently at $0.3085 and $0.3113 respectively.
Looking at the 4-hour chart, Ripple is stuck in a relatively wide range between $0.28 and $0.34. The mundane sideways trading trend means that market indecision exists. Therefore, price action in either direction will determine the breakout. In other words, a breakout above $0.34 range limit, could pave the way for correction past $0.4 while a breakdown under $0.28 support, is likely to lead to more losses.
In a technical perspective, Ripple is slightly bullish. The Moving Average Convergence Divergence (MACD) is heading north. If the bullish divergence enters the positive region, this could encourage the buyers to increase their entries. In turn, give Ripple a boost out of the range resistance.
Ripple Key Technical Indicators:
Trend: Sideways trading between $0.28 and $0.34.
Key support Areas: $.30 and $0.28
Critical resistance areas: $0.32, $0.34 and $0.40.
MACD: Bullish divergence suggestion bulls gaining traction.